Here’s something to consider alongside today’s news that Bush and Obama now are working together to free up the second half of the Treasury’s $700 billion bailout for the financial system: the deficit.

Yes, plenty of economists advocate deficit spending during recessionary times, but it’s no sure thing. Obama’s own advisers have published research in the past that questions the wisdom of trying to time a stimulus package to reverse hard times, as New York Times David Brooks explained recently.

And some question just how much bang for the buck you actually get with government spending already far exceeding revenues. In a Bloomberg column today, economist Kevin Hassett, who advised the Treasury during both the former Bush and Clinton administrations – and who also advised the McCain campaign – sums up some findings about the deficit that surely make the business-minded nervous.

Like this little observation about the projected federal $1.2 trillion – which doesn’t include the $800 billion Obama says he wants for his stimulus package: “The whole world’s military spending in 2006 totaled a little less than $1.2 trillion,” Hassett writes. “So the next year’s U.S. deficit could cover that and still have $500 billion left over for building bridges.”

Hassett points out that when our current president was first elected, “total government spending was about $1.7 trillion. In other words, the difference between federal outlays and federal revenue this year will be bigger than the entire government was as recently as 2000.”

The problem with this out-of-control spending is that every time a new benchmark for spending gets set, government rarely goes back and reduces budgets.

“While advocates of Keynesian-style stimulus are correct that this economy is terrible enough to warrant dramatic action, it is hard to understand how such a fiscal path might help,” Hassett says.

“The only sensible path is for the U.S. to put its long-term fiscal house in order,” Hassett says. “Without that, this year’s stimulus will likely be a historic flop.”

Lynn Bartels thinks politics is like sports but without the big salaries and protective cups. The Washington Post's "The Fix" blog has named her one of Colorado's best political reporters and tweeters.

Joey Bunch has been a reporter for 28 years, including the last 12 at The Denver Post. For various newspapers he has covered the environment, water issues, politics, civil rights, sports and the casino industry.